Buyers and agents should be aware of a new policy introduced by the Dubai Land Department (“DLD”) which may create difficulties in settling certain property transactions. This article looks to summarise the new DLD payment policy and suggest safeguards that could be taken to prevent risks of delays in settlement, or in the worst case scenario, defaults.

In brief: 

• A copy of the buyer's cheque must be supplied at the transfer meeting and will only allow transfers to proceed where the cheque is made payable to the seller or directly to the DLD.

• The Dubai Land Department (“DLD”) has introduced a revised transfer procedure which could potentially create difficulties for the settlement of certain property transactions.

• In order to avoid problems in negotiating a settlement the parties should ensure the authority described in the Power of Attorney is clear and specific in ensuring the seller's attorney can receive all payments on behalf of the seller.